Senate Democrats point to areas of accountability for CFPB

Senate Democrats have issued a list of accountability measures for the Consumer Financial Protection Bureau in response to Senate Republican claims that the new agency lacks accountability.

The majority side of the Senate Banking Committee highlighted that the president can remove any CFPB director “for inefficiency, neglect of duty, or malfeasance in office,” which is a similar power given to the president for the Federal Reserve, the Securities and Exchange Commission and the Federal Trade Commission.

According to the Democrat’s list, the CFPB director is required to consult with the prudential and other federal regulators during rulemaking regarding prudential, market and systemic objectives.

In May, 44 Senate Republicans sent a letter to President Obama threatening to block any pick to lead the CFPB and demanded “structural changes that will make the Bureau accountable to the American people.”

Those Senators have stuck to their word and are holding up the confirmation process of former Ohio attorney general Richard Cordray as the CFPB director.

According to Senate Democrats on the Banking Committee, every regulatory agency is structured with different features that make it accountable and each agency has a unique combination that fits its mission and independence.

Senate Democrats said that there is clear accountability at the CFPB and Republican efforts to change the structure of the agency are attempts to destroy the CFBP’s ability to do its job protecting American consumers.